Microsoft has announced it will retire Skype in May 2025. The move will shift focus to Microsoft Teams, its modern communication platform.
Figure 1: Microsoft retires Skype to focus on Teams
End of an Era for Skype
Skype, the video-calling service MS acquired for $8.5 billion in 2011, will cease operations on 5 May 2025. The transition reflects changing user preferences and Microsoft’s long-term strategy for communication tools.
Starting in May 2025, Skype will no longer be available. Over the coming days you can sign in to Teams Free with your Skype account to stay connected with all your chats and contacts. Thank you for being part of Skype pic.twitter.com/EZ2wJLOQ1a
— Skype (@Skype) February 28, 2025
Transition to Microsoft Teams
Skype users will be able to sign into Teams using their existing Skype credentials. Contacts and chats will automatically transfer.
Microsoft has confirmed that:
- Teams offers familiar Skype features, including messaging, calls, and file sharing
- Additional tools include meeting hosting, calendar management, and community-building functions
- Teams now serves hundreds of millions of users globally
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The Rise of Microsoft Teams
Microsoft reported that consumer users of Teams have increased meeting minutes fourfold over the past two years. The platform has 320 million monthly active users, significantly surpassing Skype’s estimated 23 million in 2020.
A Shift in Communication Preferences
Skype’s decline began as competitors like Zoom, WhatsApp, and Slack gained traction. Microsoft prioritised Teams by integrating it with Office applications, positioning it as a business and consumer collaboration hub.
The Legacy of Skype
Founded in 2003 by Estonian engineers, Skype revolutionised online voice and video communication. It became widely used for personal and professional connections.
Barbara Larson, a management professor at Northeastern University, noted:
“You no longer had to be a senior manager in a Fortune 500 company to have a good-quality video call with someone else. It brought a lot of people around the world closer.”
Despite its early success, Skype struggled to adapt to the smartphone era. The COVID-19 pandemic accelerated the shift towards Teams, which offered better integration with MS’s ecosystem.
The Evolution of Ownership
Skype changed hands multiple times over its 21-year history:
- eBay acquired Skype in 2005 for $2.6 billion
- A group of private investors took control in 2009
- Microsoft purchased it in 2011 for $8.5 billion
At its peak, Skype was a global communication leader, with its name becoming synonymous with video calling.
Former Microsoft CEO Steve Ballmer stated at the time:
“The Skype brand has become a verb, nearly synonymous with video and voice communications.”
How Users Can Transition
Microsoft has outlined two options for Skype users:
- Move to Teams – Users can log into Teams using Skype credentials. Contacts and chats will transfer automatically.
- Export Skype Data – Users can download chat history, contacts, and call records before the platform shuts down.
Detailed explanation video by Microsoft:
Skype will remain available until 5 May 2025, allowing time for users to make the transition.
Continued Support During Transition
During the transition, Skype and Teams users can communicate across platforms. Microsoft has released a step-by-step guide to assist users in getting started with Teams.
Changes to Skype Paid Services
- Microsoft will no longer offer new Skype subscriptions or Skype Credit purchases
- Existing subscriptions will remain valid until the end of their renewal periods
- After May 2025, the Skype Dial Pad will be accessible via the Skype web portal and within Teams
Reflections on Skype’s Impact
Following announcement, users shared their experiences of Skype’s role in their lives.
One user posted on X:
“My best friend and I share many good memories on Skype. This is a sad day and almost a feeling of losing yet another fragment of my adolescence.”
Another user reflected:
“While I knew the day would come, it’s still sad. A lot of good memories there in an era when it was needed the most.”
Looking Ahead
Microsoft remains committed to helping users transition to Teams. The company expressed gratitude to Skype’s users, stating:
“Skype has been an integral part of shaping modern communications and supporting countless meaningful moments, and we are honoured to have been part of the journey.”
Microsoft will continue to support communication and collaboration through Teams, ensuring a seamless transition for users.
